AUDUSD Continues Losing Streak As Bears Remain in Control
FXOpen
The Australian Dollar (AUD) extended downside movement against the US Dollar (USD) on Friday, dragging the price of AUDUSD to less than 0.7325 as bears seem to gain momentum. The technical bias has already turned bearish because of a Lower Low in the ongoing downside wave.
Technical Analysis
As of this writing, the pair is being traded near 0.7304. A support may be noted around 0.7275, a key horizontal support level ahead of 0.7242, another major horizontal support as demonstrated in the following daily chart.
On the upside, the pair is likely to face a hurdle near 0.7382, a key horizontal resistance level ahead of 0.7500, the psychological number. The technical bias will remain bearish as long as the 0.7718 resistance area is intact.
Initial Jobless Claims
Initial jobless claims jumped much more than expected last week, by 20,000 to 294,000. That’s the highest level for claims since the week of February 28, 2015. Economists had forecast that first-time filings for jobless claims totaled 270,000, according to Bloomberg. The four-week moving average of claims, which evens out the weekly volatility, jumped by 10,250 to 268,250, around where it was mid-February. Overall, the spike is no reason to be alarmed about the labor market. Initial claims have not crossed the 300,000 mark for 62 straight weeks.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair on every short term bounce still appears to be a good strategy.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
DAX 40: consolidation amid technology sell-off
A wave of selling in the technology sector that emerged earlier this week has weighed on European equities. The trigger was investor concern over the profitability of large-scale debt-funded investments by major US tech companies in AI infrastructure. The Nasdaq
Euro Hits Fresh Yearly Lows Amid Dovish ECB Signals
The euro remains under pressure following weak macroeconomic data from the euro area and fresh signals that the European Central Bank is prepared to maintain a more accommodative monetary policy stance. Data released yesterday pointed to a deterioration in business
Pound at Key Levels: Markets Assess Impact of Political Uncertainty in the UK
The British pound remains under pressure following increased political uncertainty in the United Kingdom triggered by the Prime Minister’s resignation. Investors are assessing potential shifts in the political and economic policy outlook after the head of government stepped down,